Benefits of Outsourcing
Cost management
l Realization of cost savings through economies of scale and consolidations 。
l Personnel cost savings through low offshore salary rates 。
l Technical cost savings 。
l Acquisition of cash through liquidation of computers and the decrease in depreciation expense 。
l Convert costs centre within company to profit centre within vendor's operation。
Focus on core activities
l Refocus organization
l Reengineer processes
l Accommodate business need to downsize.
l Outsourcing non-core business functions frees internal resources to focus on business-critical tasks
Improved operational quality
l Address system integration issues
l Access to improved backup and disaster recovery facilities
l Increased expertise - benefit from the core business expertise of specialized partners (customers can choose an offshore facility that is specialized in a particular vertical market segment)
l Incremental increases in data processing resources rather than a step function
l We have adopted third-party quality standards (CMM, ISO) which, in many instances, are more rigorous than those of our clients
De-risk business
l Increased access to diverse technologies
l Access to technology without capital investment.
l Access to major and immediate changes
l Distributed and thus lowered risk of running an IT operation
l Reduce technical obsolescence risk
l Stabilize Information System costs
l Provide alternatives
l Facilitation in cases of leveraged buyouts.
l Readily proliferated with acquisitions.
